Reverse Logistics As An Integral Part Of Supply Chain Management

2563 words - 10 pages

Introduction

Most of us think of logistics as a one-way street. Products are manufactured, packaged, stored in a warehouse, sold, and then shipped off to the customer ... end of story. Yet for many logistics managers today, that's not the end of the story. In addition to managing outbound goods, they also are responsible for reverse logistics--the flow of returned goods and packaging, including customer service and final disposition of returned items.

The need to manage waste materials and returned goods is growing in all kinds of industries. Today, companies like Xerox, Mobil, Home Depot, and Ethan Allen Furniture - to name just a few - have recycling programs that meet the needs of their individual industries. There are many reasons for the explosive growth of what's come to be known as "reverse logistics" over the past five years or so. The most prominent is increasing public awareness of the social costs of excess waste. A large-scale recycling program, therefore, generates goodwill among consumers and industrial customers. As support for recycling grows, moreover, companies want to be perceived as good citizens that are committed to protecting the environment. Another important reason is the need to control costs. Frequently, manufacturers treat recovery of products and packaging as an afterthought. A well-managed reverse-logistics program, however, can bring enormous savings in inventory-carrying, transportation, and waste-disposal costs.
For these and other reasons, more and more companies are launching reverse-logistics programs today. Unfortunately, it's often assumed that reverse logistics is simply a matter of reversing the outbound distribution process. In fact, recycling and returns management have their own unique and complex issues that affect logistics operations. A brief overview of those issues highlights the five main areas you should consider before starting a reverse-logistics program.

A related issue is what kind of resources you are willing to commit to a reverse-logistics program. The obvious answer is that the level of potential benefits will influence how much a company will invest in such a program. Too often, though, companies shortchange themselves by failing to devote sufficient time, money, and personnel to the project. "A lot of times, [reverse logistics] becomes a side job for somebody. It's not their focus or a high priority," says Cindie Vaughan, supervisor of reverse logistics for Consolidated Freightways.

If no one is proactively managing the process, it's bound to result in higher costs and missed opportunities for savings and profits. A solution for many companies that have limited resources for reverse logistics is outsourcing that function to third parties or transportation companies. It's up to the shipper, though, to examine the cost and service benefits, then decide how much of the process should be outsourced. "As with any outsourcing decision, it's a matter of being able to focus on your...

Find Another Essay On Reverse Logistics as an Integral Part of Supply Chain Management

Logistics Support for Agro business in context of the Supply Chain of

1481 words - 6 pages ; direct-mail firms; newspaper, magazine, and TV direct-to-customer ads; home shopping TV; and e-commerce on the Internet. As a result, they are experiencing shrinking margins. In response, entrepreneurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations, and performances. They are marketing an experience rather than a product assortment. Suggestions: 1. We should follow the model of supply chain management

Communications: An Integral Part of Education

1009 words - 4 pages Communication: An Integral Part of Education Communication is a skill that everyone needs to acquire and learn how to utilize effectively. In any given profession, communication is required regardless of whether or not the field is a creative, professional, or strictly business. Especially in the field of elementary education do the teachers and staff need to possess exemplary communication skills. This is not only with the students but as

Supply Chain Management Of Toyota

3385 words - 14 pages Supply Chain ManagementIntroductionMany researchers have pointed out the importance of Supply Chain ( SC ) and Supply Chain Management ( SCM ) in competitive environment. In this report, we will discuss about ( i ) Toyota Mortor Manufacturing North America ( TMMNA ) which is located in Erlanger, Kentucky, current supply chain position and one of its suppliers, TAC manufacturing, located in Jackson, Michigan, supplies steering wheels and air bags

Supply Chain Management of Amazon

2052 words - 9 pages This paper reviews the supply chain management practices of Amazon.com (AMZN) and highlights findings in the framework of a Strengths – Weaknesses – Opportunities – Threats (SWOT) framework. AMZN opened its virtual doors on the World Wide Web in July 1995 as a web based bookseller and today offers Earth’s Biggest Selection according to the company’s 2012 annual report to shareholders. AMZN’s vision statement is to be Earth’s most customer

Divesity: An Integral Part of a Multinational Organization

920 words - 4 pages Diversity has yet to be clearly defined, but it is an integral part of a multinational organization. In the high-paced world that is thriving today, a company must inhabit all areas of diversity from the people they employ to the way they communicate to further their growth over a diversity of lands. The multinational companies of the hotel industry are constantly competing with one another to develop innovative ideas that will uphold a diverse

The Strategic Importance of Supply Chain Management

2046 words - 8 pages ' for 'skilled in calculating', was evolved from military logistics after World War II (Pienaar and Vogt 2009). In modern business world, logistics was defined as ' that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and then point of consumption in order to meet customers' requirements' (Pienaar

Emerging Field of Green Supply Chain Management

707 words - 3 pages manufacturing, reverse logistics and waste management. This paper will briefly discuss these issues. This paper will also mention the reasons why organizations would opt for a green supply chain. This essay will then conclude that there is a gap in the literature in terms of the stakeholder views towards green supply chain management. Knowing the different stakeholders’ views to greening initiatives requires qualitative study such as interviews

Comparison of Supply Chain Management Practices

5906 words - 24 pages procurement strategy by presenting suppliers with other incentives such as higher volume, long-term contracts in exchange for low margin prices. By building trust through a long-term contract and relationship instead of aggressive price-cut negotiations, Wal-Mart will be able to achieve a healthier relationship with the suppliers. An efficient global supply chain management strategy would include building strong relationships with suppliers (Simchi-Levi

Supply Chain Management: The Heartbeat of Dell

1671 words - 7 pages A human heart is a great example of an effective supply chain management system. To the unsuspecting owner, it transparently replenishes the blood supply by providing red oxygen-rich blood into circulation, and retrieving. When demand for oxygen to the muscular system increases, the heart rate increases as well, furiously pumping through four chambers each with a series of valves and flaps which restrict blood flow in one direction. When demand

Legal Aspects of Supply Chain Management

2683 words - 11 pages Legal Aspects of Supply Chain Management Internet has definitively changed the relationships of the company with the different business partners of the supply chain. E-Commerce/E-Business is any ‘net’ business activity that transforms internal and external relationship to create values and exploit market opportunities driven new rules of the connected economy.”(Damanpour 2001). It refers to all forms of business

Supply Chain Management

1290 words - 5 pages customers, developing a network of warehouses, arranging carriers to get products to customers and setting up of an invoicing system to receive payments.5.Return:This is the most problematic aspect of supply chain and involves receiving defective products back from customers as well as providing customer care for delivered products.Importance of Supply Chan Management:Supply Chain Management emphasizes a shift of focus away from business units such as

Similar Essays

Anticipatory Logistics On Supply Chain Management

938 words - 4 pages logistics.First there must be a definition of what "anticipatory" logistics really is. Just like some might interrupt "logistics" and "Supply Chain Management (SCM)" as being the same, some communities have different definitions to what these and anticipatory logistics are. In my research on this module the term "anticipatory" logistics is enabled by digitization. For example, an engine sensor on a military vehicle records a value that it may begin to

Saudi Aramco's Hydrocarbon Supply Chain Management Shipping & Logistics Aspect

3761 words - 15 pages management as the identification, acquisition, access, positioning and management of resources that an organization needs or potentially needs in the attainment of its strategic objectives.""The supply-chain - a term now commonly used internationally - encompasses every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer. Supply-chain management includes managing supply

The Reverse Supply Chain: Question And Answers

865 words - 4 pages it has been executed successfully in the automotive industry. The reverse supply chain process was earlier perceived to be a valueless process and it was the fear of regulations that forced most companies to invest in reverse supply chain processes. That is when they realized that reverse supply chain is a good business weapon that reaped benefits when used tactically. Reverse supply chain is an integral part of any supply chain process. A

Logistics Support For Agrobusiness In Context Of The Supply Chain Of Perishables

1789 words - 8 pages are building entertainment into stores with coffee bars, lectures, demonstrations, and performances. They are marketing an experience rather than a product assortment. Business logistics is a relativity new field of integrated management study in comparison with the traditional fields of finance, marketing, and production. It is that part of the supply chain process which plans, implements, and controls the efficient, effective flow and storage